Everything you need to know about groupage: principle, advantages and limitations

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28 Nov, 2022

All carriers are closely monitoring fuel prices. Indeed, a fare increase, even a very small one, can have serious consequences on the finances of transport companies. Faced with this, a fuel indexing process has been put in place by the authorities. This is governed by the law of January 5, 2006. How Road freight transport companies, in Bordeaux and elsewhere in France, generally group together several professions. Not only do they offer transport and logistics services, but they also distinguish several different activities within the “transport” branch. Indeed, between courier service, express transport or even long distance transport and groupage of goods, we do not use the same know-how and the same working techniques. Since groupage is one of the best known and most widespread means of transporting goods, Transports Goëvia would like to introduce you to the way it works, its main advantages and its disadvantages.

What is groupage in freight transport?

Groupage” is when a transport vehicle contains the goods of several different customers. This practice, very popular in the world of TRM (Transport Routier de Marchandises), is an efficient way to reduce costs and optimize vehicle loading.

Very often, the customer of a carrier does not have enough goods to fill a complete vehicle. But as we know, a truck that runs half empty costs the transport company more money, not to mention that it also generates unnecessary emissions. For economic and ecological reasons, it is therefore in the interest of the company to promote the grouping of goods whenever possible.

Companies that group goods, as is the case with Transports Goëvia in Gironde, have a perfect command of the storage and flow management techniques associated with this mode of operation. In concrete terms, each warehouse used in the groupage of goods is strategically located. At the same time, from the reception of incoming batches to the preparation of shipments and addressing, each stage of the logistics chain is subject to a process that is optimized down to the smallest detail.

The main advantages of groupage in transport and logistics

With the help of freight consolidation, small and medium-sized companies working with smaller volumes of goods can easily find affordable transport solutions. Thus, they do not need to have a complete batch to transport to send their goods: they can work by partial batches with all the carriers who do groupage, like Goëvia.

For small and medium-sized companies as well as for larger establishments, groupage of goods allows significant savings on transport costs, by sharing expenses – and even risks – with other customers. On the carrier side, this practice also contributes to increasing productivity, reducing operating costs (thanks to load optimization) and gradually reducing the carbon footprint.

Finally, by means of an optimized transport plan, one can take advantage of groupage and increase the number of deliveries on the same route. This creates a more profitable, more productive, but also more qualitative model for customers.

The Bordeaux transport company Transports Goëvia relies on a qualified operations department and its own design office to draw up transport plans. These are constantly studied and adjusted. The guarantee of an efficient and profitable groupage of goods for everyone.

What are the limits of the groupage of goods?

Generally speaking, we can present the consolidation of goods as a “win-win” technique, which satisfies both the carrier’s and the shipper’s objectives. However, in some cases, this is not the right way to work.

In this sense, if a customer is able to fill a vehicle with a full load of 33 pallets, there is no need to combine his goods with those of other shippers: this could unnecessarily complicate stock and route management.

In addition, some professionals may need an express transport, dedicated to their goods and without breaking the load. This is the case for certain sensitive goods, which should not be handled too often for example. In this case, grouping is not recommended.

It should also be noted that carriers do not generally guarantee delivery times when they group shipments. These are respected in more than 95% of cases, but a simple unforeseen event when picking up a pallet can cause delays throughout the supply chain. That’s why they can’t make a formal commitment – whereas they do on more targeted services like express transportation.

Your groupage of goods with guaranteed delivery: our “Christmas without stress” offer

At Transports Goëvia, we know that the current period is decisive for many customers. That’s why we’re doubling down! From December1 to 31, 2022, we guarantee the delivery of all your goods within 24 or 48 hours, so that no delay will spoil your festive season. If we do not keep this promise, we will reimburse you 100% of the transportation costs.

Goods delivered on time is a first strong point… But goods transported smoothly and intact to the recipient is a second essential point. This is why Transports Goëvia also ensures the protection of your goods with their “Christmas without stress” offer: in case of litigation, they are covered up to 50 000 €!

Rely on a road freight specialist to take full advantage of this decisive period in many economic sectors. Contact us now for your shipments, or request a quote directly on our Goëvia Online application.

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